“Fixing wages at an enterprise is the subject of agreement of social partners – trade unions and employers. Forcing employers to pay more would be extremely difficult,” said Andrey Selivanov.
Photo: Valery Melnikov
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Federal Tax Service to Run Payroll Calculations
Federal Tax Service announced the launch of the second stage of campaign against under-the-table salaries and intentionally reduced payment of single social tax. This time, tax bureaucrats intend to dictate to an employer how much to pay to the employees.
Yesterday, Russia’s Federal Tax Service (FTS) summed up the first results of campaign against under-the-table salaries. In the second effort, the regional taskforces of the FTS will demand from chiefs of the enterprises not only to extend the wages up to the minimal cost of living but also make them average in industry and with regard to economic activities.
This novelty of FTS has rattled even the bureaucrats. “Fixing wages at an enterprise is the subject of agreement of social partners – trade unions and employers. Forcing employers to pay more would be extremely difficult,” said Andrey Selivanov, deputy head of the Russian Labor Agency.
The initiative will trigger social clashes, Selivanov predicted. “It will give rise to distortion in budget and commercial sectors with a low-skilled worker of oil and gas sector earning much more than a teacher. Chiefs of the regions will face big problems because of the growth of social tension,” the official said.
The battle of tax officials for stepping up wage bills may cut down receipts generated from profit taxes of enterprises, as the efficiency of the latter will decline, said Natalia Burykina, head of State Duma’s Tax Subcommittee. “The single social tax and the profit tax are communicating vessels,” the deputy explained.
The business doesn’t hail the initiative either. “For some reason, FTS thinks it possible to interfere into activities of an enterprise and dictate to its owner how to distribute financial flows,” said Sergey Belyakov, deputy head of the Tax Committee of Russian Union of Industrialists and Entrepreneurs.
www.kommersant.com
All the Article in Russian as of Nov. 29, 2006
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